1. Plug and Play is disabled in BIOS - need to check BIOS for that.
2. You still have virus in your PC - scan with SuperAntiSpyware in safe mode for a start. You can download it from www.superantispyware.com.

Hope it helps.

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CHFFridayAuthor Commented: 2009-04-15

Thanks for the responce!
As we speek I may have solved this problem on my own. I re-ran Malwarebytes after I did an data update and it found more problems. Told it to fix these and just for the heck of it I inserted a USB thumb drive and it was found and it showed up along with the Hard drive in disk management.

Good to see that the problem has been resolved :), always happy to help. In most of the windows xp questions, I always suggest scanning with either MalwareBytes or SuperAntiSpyware to rule out the possiblity of a virus. If that possibility is ruled out, then its easier to concentrate on other things that could be the real reason.